MAY 2018
The South America water treatment chemicals market is estimated to register a CAGR of 3.96% during the forecast period, 2018 - 2023. Brazil is estimated to dominate the region supported by the ongoing government plans to build proper water treatment facilities. Oil & Gas industry is to contribute high in terms of revenue to the market.
The water-energy nexus is an important topic in the region especially in Brazil, a country with great oil & gas potential and that highly relies on hydroelectric power. The environmental regulations made in the region target water pollution, which will result in the creation of number of wastewater treatment plants. The Sao Paulo’s water and wastewater services company is working with Sabesp and other municipal governments to achieve the goals with universal water coverage and 95% coverage of sewage services. All these initiatives combined are driving the market for water treatment chemicals in the region.
Various oil & gas producers are constantly developing technologies to reduce and reuse water, while exploring the use of alternatives, owing to financial constraints, and depleting fresh water resources. During the oil extraction process, water is also extracted from the source known as produced water, which is the largest waste stream generated in this industry. This produced water contains a mixture of different organic and inorganic compounds that are to be separated from that water. Pre-treatment, demineralization, and silica removal have to be performed to ensure boiler feed water quality. Compared to other end-user industries, the oil & gas industry in the region looks promising, which is to drive the market for water treatment chemicals.
Brazil is the largest economy in South America and one of the fastest growing countries in the world. The country is also witnessing fast growing population and rapid urbanization. Water treatment chemical is used in industries, such as food & beverages, chemical plants, municipal, mining, etc. in the country. Moreover, Brazil lacks proper sewage treatment facilities, with even major cities found to be able to treat only a small portion of the produced wastewater. Thus, the government is planning to have proper water treatment facilities, which will increase the usage of water treatment chemicals in the coming years.
Major Players: BASF SE, Chemtreat Inc., Organo Corp., PQ Corp, Wex Technologies, among others.
